The company, which originally announced the plan last May, is offering to buy up to 85 million shares at a fixed price of $19 per share. The offer ends on March 6.
“Limited wanted to return about $2 billion to shareholders and the stock buyback is the best way to do it,” said Jeffrey Edelman, an analyst for C.J. Lawrence.
That Wexner is not participating in the offer should allay fears that he was just trying to take money out of the business, or preparing for an exit, Edelman added. The move will add about 40 cents per share to the company’s earnings.
Wexner instead will have the chance to sell 18.75 million shares for three years, starting in 1998, at a prices from $18.75 to $25.07 per share.
On Friday, Limited stock closed at 16 1/2, up 1/2, in trading on the New York Stock Exchange.